Ingrid is planning to expand her business by taking on a new product that costs $6.74. In order to market this new product, $1159.00must be spent on advertising. The suggested retail price for the product is $14.67. Answer each of the following independentquestions.(a) If a price of $17.43 is chosen, how many units does she need to sell to break even?(b) If advertising is increased to $1377.00, and the price is kept at $14.67, how many units does she need to sell to break even?CID

Break even point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Ingrid is planning to expand her…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Monica is a manufacturer of handcrafted wooden signs. The variable cost of each wooden sign Monica produces is $40. Monica sells her wooden signs to a wholesaler at a 50% margin, who then sells the wooden signs to the retailer at an undisclosed markup (%). The retailer then adds a 30% margin and sells the product to the consumer at $160. Based on this information, what is the markup (%) of the wholesaler? 40% 20% 60 50%
Ashley’s company is looking to add two new printers that will increase fixed costs by $75,000. The variable costs are $50 per order. The two new printers allow the business to increase their orders by 5000 annually. How many orders would have to be added to justify buying these new printers, vs not making any changes and continuing as they are? What other considerations might you consider in whether or not to make this purchase or not?
If the publisher believes that the price per copy could be increased to $21.95 and not affect the anticipated demand of 3800 copies, what action would you recommend? What profit or loss can be anticipated?
Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $110. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim hes priced the running shoes with a 60% markup percentage Required: 1. What selling price does the manager want? 2. Whet selling price has Kim calculated? 3. If there are 43 running shoes, how much will the store lose in sales if the price is not corected?
Urmila
1. If the company want to achieve target net income $800,000 and the tax rate is 30%, calculate how many units to be sold to achieve those targets? 2. The owner estimates that if he can spend an additional $75,000 towards sales promotion,sales in unit may increase by 30%. What should Mr. Budi’ decision be?
5. What is the maximum price that Silven should be willing to pay the outside supplier for a box of 24 tubes? 6. Instead of sales of 130,000 boxes of tubes, revised estimates show a sales volume of 161,000 boxes of tubes. At this higher sales volume, Silven would need to rent extra equipment at a cost of $51,000 per year to make the additional 31,000 boxes of tubes. Assuming that the outside supplier will not accept an order for less than 161,000 boxes of tubes, what is the financial advantage (disadvantage) in total (not per box) if Silven buys 161,000 boxes of tubes from the outside supplier? Given this new information, should Silven Industries make or buy the tubes? 7. Refer to the data in Required 6. Assume that the outside supplier will accept an order of any size for the tubes at a price of $1.95 per box. How many boxes of tubes should Silven make? How many boxes of tubes should it buy from the outside supplier?
Vaughn Manufacturing is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $65 and Vaughn Manufacturing would sell it for $145. The cost to assemble the product is estimated at $28 per unit and Vaughn Manufacturing believes the market would support a price of $178 on the assembled unit. What is the correct decision using the sell or process further decision rule and why? Process further because profits will be greater by $33 per unit. Sell before assembly because profits will be greater by $33 per unit. Sell before assembly because profits will be greater by $28 per unit. O Process further because profits will be greater by $5 per unit. eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer
Am.104.
Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $120. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage.Required:1. What selling price does the manager want? 2. What selling price has Kim calculated? 3. If there are 42 running shoes, how much will the store lose in sales if the price is not corrected?
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* Your answer is incorrect. Crane Company sells 302 units of its products for $20 each to John Inc. for cash. Crane allows John to return any unused product within 30 days and receive a full refund. The cost of each product is $13. To determine the transaction price, Crane decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Crane estimates that (1) 9 products will be returned and (2) the returned products are expected to be resold at a profit. (a) Indicate the amount of net sales. Net sales $ (b) Indicate the amount of estimated liability for refunds. Liability for refunds $ Cost of goods sold 5869 (c) Indicate the amount of cost of goods sold that Crane should report in its financial statements Lassume that none of the products fave been returned at the financial statement date) 5 eTextbook and Media 171 Q Search 3913 (7

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